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Investing.com - Goldman Sachs has raised its price target on Instacart (NASDAQ:CART) to $67.00 from $60.00 while maintaining a Buy rating following the company’s second-quarter earnings results. The stock, which has gained 19.24% year-to-date and currently trades near $49.39, shows promising potential according to InvestingPro data, which rates the company’s overall financial health as "GREAT" with a score of 3.3 out of 5.
The firm cited Instacart’s better-than-expected Gross Transaction (JO:NTUJ) Value, which exceeded both forecasts and company guidance. Goldman Sachs attributed this performance to Instacart’s competitive positioning in large basket activity, product and technology adoption across its ecosystem, and operational efficiencies. The company maintains impressive gross profit margins of 75.22%, demonstrating strong operational execution.
The advertising segment revenue was in line with expectations, with large advertisers showing muted activity offset by increasing retail media activities from emerging brands, a trend Goldman Sachs expects to continue in the second half of 2025.
Goldman Sachs also highlighted Instacart’s continued execution on adjusted EBITDA, which came in 6% ahead of the firm’s forecast, and noted the company’s ongoing efforts to scale AI implementation across its platform.
The firm pointed to the upcoming CEO transition on August 15, when Chief Business Officer Chris Rogers will replace outgoing CEO Fidji Simo, who led the company from private to public markets, as a "strong sign of strategic continuity that has earned investor confidence."
In other recent news, Instacart is preparing for its upcoming earnings report, with Benchmark maintaining a Hold rating on the company. The research firm anticipates that Instacart’s second-quarter gross transaction value and total revenue will align with consensus estimates, though transaction revenue might fall slightly below expectations. Meanwhile, Bernstein has raised its price target for Instacart to $60, citing growth in advertising and potential upside to EBITDA forecasts. The focus remains on Instacart’s third-quarter guidance, particularly its gross transaction value as it experiences changes in its Restaurants segment.
Citizens JMP continues to support Instacart with a Market Outperform rating and a $55 price target, emphasizing the company’s partnerships with OpenAI, YouTube, and TikTok. This firm also highlights Instacart’s efficient order density, which contributes positively to its unit economics. Additionally, Citi analysts have maintained a Buy rating and a $57 price target amid an upcoming leadership transition. Chris Rogers, the current Chief Business Officer, will succeed Fidji Simo as CEO and President, a change expected to carry minimal execution risk.
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